CLICK BELOW FOR THE QUIZZES & ANSWERS

2025

Unique Program Provisions (4/30/2025)

LIHTC Terms (3/26/2025)

Assets (2/26/2025)

Casualty Loss (1/29/2025)

2024

HOTMA Deadlines (12/30/2024)

Program Regulations (11/27/2024)

Fair Housing 2024 | Part 2 (10/30/2024)

Fair Housing 2025 | Part 1 (9/25/2024)

RD and HOTMA | Aug 2024 Update (8/28/2024)

HOTMA HUD TSP | Part 2 (7/31/2024)

By May 31, 2024, HUD required that owners/agents of HUD-funded properties have their Tenant Selection Plans and EIV policies updated for HOTMA changes. There were many options to choose from. Below tests knowledge of the options.

Note: Questions 1-5 were in the June quiz.

6. Which of the following is NOT an acceptable means-tested program determination that can be used per HOTMA.

A) WIC

B) TANF

C) SSA

D) SSI

E) The LIHTC

Details | Eligibility for receipt of SSA is not based on an income test, so SSA is not on HUD's list of safe harbor programs. See Joint Implementation Notice J4

7. Over which of the following income changes does an owner have the discretion to use a lower threshold than 10% when implementing an interim re-examination policy?

Increases or Decreases

Details | An owner must implement the HOTMA 10% threshold for increases of income that require an interim. They may implement a lower threshold for decreases of income. See Joint Implementation Notice I.1 & I.2

8. EIV New Hires Reports are now only required to be run annually.

True or False

Details | As earned income increases generally do not trigger interim certifications, the New Hires Report is only needed at annual re-examination unless certain owner policies require they be run at least quarterly. See Joint Implementation Notice Table J1 "New Hires Report"

9. Which of the following is NOT adjusted based on inflation each year? [choose all that apply]

A) The dependent deduction

B) The passbook savings rate

C) The elderly deduction

D) All three asset "$50,000" rules

Details | The passbook savings rate is based on an average FDIC-published rate, not inflation. See Joint Implementation Notice Table F.5

10. An owner has an enforcement policy of the asset limitations at re-examination. If a family assisted by Section 8 PBRA is out of compliance with the asset limitation, they must be evicted starting no later than 6 months after the re-examination where they were non-compliant.

True or False

Details | Assistance, not tenancy, is terminated. See Joint Implementation Notice A.5

HOTMA HUD TSP | Part 1 (6/26/2024)

1. EIV income reports must be run for a family _____ days after initial certification.

A) 30

B) 60

C) 90

D) 120

Details | This has changed from 90 days. See Joint Implementation Notice Table J1 [Income Report for MFH Programs]

2. An owner/agent may have a policy to refuse to conduct interim re-examinations when family members secure new jobs.

True or False

Details | Even if an owner's policy allows for interim based on increases of earned income, it is only under very limited circumstances. An owner may avoid them altogether. See Joint Implementation Notice I.2

3. When a family benefiting from the 5% or 7.5% phase-in moves to a new HUD property, the owner may not have a policy to allow the phase-in rate to continue at the new property.

True or False

Details | A policy allowing the phase-in to port is acceptable. See Joint Implementation NoticeTable C2

4. At initial eligibility, an owner has which of the following options relating to real property and $100,000 asset limitations? [choose all that apply]

A) Total non-enforcement

B) Total enforcement

C) Limited enforcement with an option to cure

D) Exception policies

Details | At initial eligibility, the owner has no discretion and must enforce the asset limitations. The other options are only allowable at re-examinations. See Joint Implementation Notice Attachment A.

5. If a family revokes their release of information on form 9886 or 9887, the owner's policy may allow the household to continue to receive assistance indefinitely.

True or False

Details | PHAs/MFH Owners may have a policy that revocation of a family’s consent will result in the termination of assistance immediately. If not, assistance cannot continue past the next required re-examination. See Joint Implementation Notice J2

HOME Provisions (5/29/2024)

Fosters and HOTMA (4/24/2024)

Income Limits 2024 (3/27/2024)

Preparing for the impending release of 2024 income limits, this month's quiz tests income limit concepts as they apply to various housing programs.

1. Once a tax credit property is placed in service, it will use lower income and gross rent limits, if limits go down in the property's area.

True or False

Details | Starting with the Housing and Economic Recovery Act (HERA) in 2008, tax credit income limits hold harmless. That is, once a project is placed in service, the income limits used will never go below the limits used in a prior year.

2. MTSP income limits are used for which programs

A) HUD Multifamily

B) Tax credit and tax-exempt bonds

C) Rural Development 515 and Farm Labor

D) HOME and National Housing Trust Fund

Details | HUD describes the tax program limits as Multifamily Tax Subsidy Program (MTSP) limits.

3. When HUD releases the HUD and MTSP income limits, these do not apply to HOME units.

True or False

Details | HOME limits are different than other HUD program (AMI) or the tax credit limits. They are generally published months later and are implemented then.

4. A project placed in service in the year 2006 is eligible for the HERA Special tax credit limits, if these limits are listed as an option for the property's county.
True or False

Details | HERA Special limits are available to projects with at least one building placed in service in 2008 or earlier. A 2009 project does not qualify.
5. What types of financing at a tax credit property are eligible for the Rural National Non-metropolitan limit?
A) HUD

B) Rural Development

C) HOME

D) Tax-exempt bonds

Details | Tax credit deals that are 4% "federally subsidized" are not eligible for the rural limits. HERA defined "federally subsidized" as tax-exempt bonds.
6. Which of the following program income limits are held harmless by property
A) HUD-Multifamily Housing

B) LIHTC

C) Rural Development

D) HOME

E) Tax-exempt Bonds

F) NHTF

Details | The LIHTC and Tax-Exempt Bond programs have income limits that hold harmless.

RD and HOTMA (2/28/2024)

HOTMA 2024 (1/31/2024)

As we move into the HOTMA era, we are focussing in this quiz on issues that are likely to have the biggest impact on the operation of affordable housing.

1. Which HOTMA provisions do NOT apply to LIHTC/HOME/NHTF properties?

A. Excluding IRS-recognized retirement accounts as assets.

B. The $50,000, as adjusted, threshold on imputed asset income.

C. Asset limits for households with more than $100,000 in assets, as adjusted, and real property suitable for occupancy.

D. ABLE Accounts excluded as assets.

Details | The asset limitations in HOTMA only apply to HUD-assisted programs. HOTMA explicitly makes it clear that HOTMA does not apply to HOME and the NHTF, and does not apply to the calculation of income that applies to the LIHTC. See HOTMA Final Rule preamble "Summary of Affected Programs" and §5.618 "Restriction on assistance to families based on assets."

2. Per HUD HOTMA guidance regarding verifications, which of the following are true:

A. Checking as valued using the current balance and with one statement.

B. Child support and alimony court-ordered amounts must be counted, even if not received.

C. Fixed income sources must be verified with benefit letters that must be no older than 120 days old at the time of receipt.

D. Excluded income and assets must be verified.

Details | All of the above are untrue, except that checking will use a current balance. See Joint HOTMA Guidance J.5.a

3. A family has access to a trust account. They are taking $500 monthly distributions from the trust. $250 is from the principal of the trust and $250 is from income. The $250 is income to the family.

True False

Details | If a family has access to a trust, the actual income from the trust is counted as it is earned, and any distributions are not counted (regardless of the makeup of the distributions). See §5.609 (b)(2)

4. Which of the following were NOT changed by HOTMA?

A. The assets disposed-of rules.

B. Imputed asset income rules.

C. Exclusion of retirement accounts

D. Student financial assistance rules.

Details | See §5.603 "Net Family Assets" (2).

5. A live-in aide's income is now counted, as is the income of foster children and adults.

True False

Details | Income of live-in aides is still excluded, and fosters' income is now also excluded. See §5.609 (b)(8)

2023

Military Pay and HOTMA (12/27/2023)

HOTMA Updates (11/30/2023)

Utility Allowances | Part 2 (10/25/2023)

Utility Allowances | Part 1 (9/27/2023)

VAWA - with 2023 updates (8/30/2023)

The Violence Against Women Act (VAWA) was reauthorized in 2022, as announced HERE. In this quiz, we explore VAWA rules, enhanced with 2023 updates.

1. During the time when VAWA was not authorized by Congress, owners/agents rightly stopped following VAWA rules.

True or False

Details | Programs funded under VAWA may not receive funding between authorizations, but the other provisions continue to apply. See more HERE.

2. VAWA prohibits police from carrying out "nuisance" penalties when victims or others repeatedly report crimes.

True or False

Details | VAWA prohibits these types of rules made by any covered governmental entity, municipal, county, or State government at a new section 41415 of the VAWA statute

3. The ________ decides how to document a victim's status as a victim of VAWA violence.

Victim of violence or Owner/agent

Details | At 34 U.S.C. § 12491 (3)(C), the victim decides how best to document their status.

4. The same financial penalties that apply to Fair Housing now also apply to VAWA noncompliance.

True or False

Details | VAWA 2022 34 U.S.C. § 12495 (5) says that "the Secretary of Housing and Urban Development and the Attorney General shall implement and enforce this subpart [VAWA Housing Provisions] consistent with, and in a manner that provides, the rights and remedies provided for in Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601 et seq.). This is the official name of the Fair Housing Act.

5. An owner/agent cannot be charged penalties under Fair Housing and also be charged under VAWA for the same noncompliant action.

True or False

Details | If the same action violates both VAWA and Fair Housing (for instance because of a disparate impact effect) nothing prevents the penalties from being imposed separately under each law.

5. Which federal agency investigates VAWA complaints and levies civil penalties?

IRS General Counsel | HUD Multifamily Housing | HUD Fair Housing | The VAWA Compliance Board

Details | HUD FHEO investigates VAWA complaints and established a website in 2023 to inform the public of rights under VAWA and to take complaints HERE.

6. An owner/agent must never request verification from a third party and must always accept self-certification to document a victim's status.

True or False

Details | Only in cases of conflicting victim information, an owner agent may request 3rd-party verification to clarify the conflict. § 12491 (3)(G)

Assets - with bonus HOTMA updates (7/26/2023)

Are you up-to-date on asset rules when certifying households? If so, how about how they will change in 2024 with HOTMA? Find out with this month's quiz.

1. Under pre-HOTMA rules, once a person started taking out periodic withdrawals for a retirement account, the balance of the retirement account was the value of the asset. The withdrawals were income.

True or False

Details | According to current HUD directions for pensions and retirement funds, "if benefits are received through periodic payments, do not count any remaining amounts in the account as an asset." [HUD 4350.3 5-6 (p)] So the balance of the retirement account is NOT counted as the value of the asset.

2. HOTMA | After HOTMA takes effect, IRS-recognized retirement accounts will never be counted as assets. Once the account owner starts taking out periodic payments, these will be income.

True or False

Details | See the new 24 CFR 5.609(b)(26)

3. Under pre-HOTMA rules, imputed asset income is calculated if the total ________ value of household assets exceeds $5,000.

Market or Cash

Details | See HUD 4350.3 5-7.

4. HOTMA | After HOTMA, imputed income only applies to individual assets that cannot otherwise have income determined and only if household asset exceeds $50,000.

True or False

Details | See the new 24 CFR § 5.609 (a)(2).

5. Which of the below-listed parts of the current HUD Handbook 4350.3 provided a list of pre-HOTMA asset inclusions and exclusions?

Chapter 6 | Appendix 3 | Exhibit 5-1 | Exhibit 5-2 | Chapter 8

Details | Bonus note: the Exhibit 5-2 is for assets. In addition to the 4350.3 income list found in Exhibit 5-1, a more up-to-date list has been published by HUD. It appears that most of the new "exclusions" listed in this document will still apply post-HOTMA as part of the new 24 CFR § 5.609 (b)(22). See HERE for more information.

6. HOTMA | HOTMA adds several new asset types.

True or False

Details | HOTMA eliminates the list of inclusions, in favor of an extensively re-tooled list of exclusions. If it is not on the list of exclusions, it must be counted. This applies to both assets and periodic income.

New NSPIRE Standards (6/28/2023)

Are you savvy with the new NSPIRE Standards? Find out in this quiz here! Each of the below represents a change from UPCS or a clarification in the release of the new Standards.

For more info on the new standard (and the reason for all of the answers) see HERE.

1. The new standard has increased the severity level of graffiti compared to UPCS.

True or False

Details | The Graffiti Standard has been removed. Graffiti does not have a clear health and safety risk and HUD has reviewed this Standard and believes that it is unnecessary and therefore is removing it from the NSPIRE Standards.

2. For the “Leak” deficiency in the “Electrical – Conductor” Standard, only active leaks are to be cited (not just evidence of past leaks) and leaks near a component confirmed to be waterproof will not be cited.

True or False

Details | This prevents reporting of past issues that have been fixed already but that are still evident.

3. Deficiency criteria for the egress Standard have been changed by requiring bedroom window egress for all units in the building, and living room windows are now considered egress for the purposes of this Standard unless there is a fire escape present.

True or False

Details | Deficiency criteria for the egress Standard have been changed by requiring bedroom window egress only for units in the building’s 3rd level and below, and living room windows are not considered egress for the purposes of this Standard unless there is a fire escape present.

4. The installation of guardrails will be required where these are missing above elevated surfaces to protect from fall hazards along balconies, stairs, ramps, decks, rooftops, hallways, retaining walls, and other walking surfaces.

True or False

Details | HUD believes that guardrails are essential to resident safety. Guardrails are commonly required in local codes. Therefore, for many localities, this will not be a new requirement, and therefore this is not expected to create a significant burden.

5. Pests other than rats, mice, cockroaches, and bed bugs are not reported under NSPIRE.

True or False

Details | Additional pest species not listed in the Standard, including ants, spiders, fleas, raccoons, squirrels, and snakes, or any pest with potential impacts on resident health and safety, would constitute evidence of an infestation and therefore be counted as a deficiency. The presence of rats, mice, cockroaches, and bed bugs specifically are each identified as separate deficiencies because they are common forms of infestation that present certain health risks and challenges that HUD wishes to identify specifically. This is not intended to be a complete list of pests, and additional pests are noted in the “other pests” Deficiency of the Infestation Standard.

HOTMA Part II (5/31/2023)

Have you heard about HOTMA? It is huge news for the affordable housing industry. This quiz will explore an additional half a dozen possible common myths that have already started growing about what HOTMA actually says. Check out last month's quiz for the first six.

Are the below true or false?

1. For HOME and public housing, the Earned Income Disregard will be applied to households who qualify for the first time until 2026.

TRUE or FALSE

Details | The EID applies to HOME and Public Housing programs and involves a 24-month period where new earned income is phased in. The EID will be applied for persons who qualify for the first time before 01/01/2024. After that, no new people will be added, but the 24 months will run out for those who qualified up to 01/01/2024. Thus, the EID will disappear for all no later than 01/01/2026. See 24 CFR 5.617(c) and 960.255(b) [2024]

2. Retirement accounts will no longer ever be counted as assets. They will be counted as periodic income once periodic withdrawals start to be made.

TRUE or FALSE

Details | See 24 CFR 5.609(b)(26) [2024]

3. Interim adjustments for income-based HUD rent will not need to be conducted if the adjustment occurs 3 months or less before the household's annual certification date.

TRUE or FALSE

Details | See 24 CFR 5.657(c)(3)(ii) [2024]

4. Interms will be necessary for HUD income-based rent when a household's gross annual income changes by 10% or more.

TRUE or FALSE

Details | It is 10% of the household's ADJUSTED, not gross income that will trigger the interim. Reference: See 24 CFR 5.657 [2024]

5. If a HOME or NHTF project has a household with tenant-based federal or state rental subsidies, the owner and PJ must accept the TBRA determination of household income for HOME or NHTF purposes.

TRUE or FALSE

Details | While this is true for project-based subsidy for HOME and NHTF, and also required for NHTF units, it is an OPTION for HOME PJs, not required. See 24 CFR 92.252 [2024]

HOTMA Part I (4/26/2023)

Have you heard about HOTMA? It is huge news for the affordable housing industry. This quiz will explore half a dozen possible common myths that have already started growing about what HOTMA actually says. Are the below true or false?

1. The dependent deduction when calculating adjusted income will be $525 starting in 2024.

TRUE or FALSE

Details | The amount will remain $480 when HOTMA takes effect, but will then be adjusted for inflation annually thereafter. The elderly household deduction is the one that will start at $525 in 2024. 24 CFR § 5.611 (a)(1)

2. HOTMA does not require owners to deny occupancy to households with assets that exceed $100,000.

TRUE or FALSE

Details | The asset limitation is an option that HOTMA allows owners, but not a requirement. 24 CFR § 5.618 (c)(2)

3. Foster children and adults will no longer qualify to live in HUD housing.

TRUE or FALSE

Details | Fosters will continue to be allowed to reside in HUD units and count for occupancy standards. They will no longer be counted for income limit purposes and their income will be excluded. 24 CFR § 5.609 (b)(8)

4. Because it relates to adjusted income, the new dependent deduction will never affect income determinations for HOME, NHTF, or LIHTC properties.

TRUE or FALSE

Details | HOME may require adjusted income for over-income households (this will not change with HOTMA). HOME, LIHTC, and NHTF will all use the dependent deduction, which will limit earned income counted for adult dependent full-time students and adoption assistance payments. 24 CFR § 5.609(b)(14)) and (§ 5.609(b)(15))

5. LIHTC income determinations of gross household income may now be used for calculating income and rent for HUD programs.

TRUE or FALSE

Details | LIHTC income determinations may be used by HUD programs to determine gross income, along with SNAP, SSI, and other means-tested programs. 24 CFR § 5.609(c)(3)(E)

6. If a HOME or NHTF project has project-based federal or state rental subsidies, the owner and PJ must accept the PBRA determination of household income for HOME or NHTF purposes.

TRUE or FALSE

Details | HOTMA now includes this provision in the HOME and NHTF regulations. HOME | 24 CFR § 92.203(a)(1)

NHTF | 24 CFR § 93.151(a)(1) through (3)

Verifications | Part 2 (3/29/2023)

90 days | 120 days | 2 months | 6 months | 180 days

Choose from the above options for questions 6 - 8.

[Note: questions 1-5 were in Part 1 of this series in last month's quiz]

6. According to the 8823 Guide, LIHTC verifications are good for 120 days from when they are received.

Details | See 8823 Guide 4-21, 4350.3 5-16 B.

Note: several state HFA agencies consider this to be obsolete based on the updated HUD "120-day by receipts + 120-day after receipt" policy (for references, see Part 1 of this quiz).

7. Source document verifications for HOME are good for a cert that is no more than 6 months old.

Details | See HOME Guide 3.2 D 3 & E 3 & 5; 24 CFR 92.203 (2013). Determinations of income for HOME are only good for 6 months prior to them being effective.

8. Verifications at Rural Development properties with LIHTC funding are good for 120 days with verbal clarification.

Details | Contrast 8823 Guide 4-21, 4350.3 5-16 B with HB-2-3560 6.8

Note: this assumes that the 120-day limit found in the 8823 Guide is required by the state LIHTC Agency. If HUD's "120-day by receipts + 120-day after receipt" policy is allowed, this answer could be different and RD verifications may expire at 180 days before the LIHTC ones up to 240 days.

9. For most affordable housing programs, third-party verification is limited to forms completed by the third party that come directly to the owner/agent and do not go through the applicants'/residents' hands.

TRUE or FALSE

Details | See HOME Guide 3.2 D 3 & E 3 & 5; 24 CFR 92.203 (2013), HUD 4350.3 5-13 (B), Tres.Reg. 1.42-5, and IRS LIHC Newsletter #54.

Note: HOME has always considered the primary method of verification to be "source documents", which are documents prepared by a third party, regardless of whether these are delivered by the applicant/tenant or directly from the third party. A prominent example is paystubs. In 2013, HUD multifamily adopted a similar policy under Change 4 of the HUD Handbook 4350.3. These also meet the requirements of the Treasury regulations and the IRS considers HUD's definitions to be sufficient if the state HFA concurs.

10. HUD and the IRS now consider paystubs to be third-party verifications.

TRUE or FALSE

Details | See details in the above item.

Verifications | Part 1 (2/22/2023)

Leases (1/25/2023)

2022

Zero Income Households (12/28/2022)

HUD Adjusted Income Deductions | Part 2 (11/23/2022)

HUD Adjusted Income Deductions | Part 1 (10/26/2022)

Income of Dependents (9/29/2022)

HUD | Student Rules (8/24/2022)

Fair Housing | Disability and Religion (7/27/2022)

Income Limits | MTSP v AMI (6/22/2022)

Tax Credit Rules | Project or Building? (5/25/2022)

HOME v. National HTF | Part 2 (4/27/2022)

HOME v. National HTF | Part 1 (3/30/2022)

Applicable Fraction v. Minimum Set-Aside (2/23/2022)

Zero-Income Households (1/26/2022)

2021

Minimum Set Aside (12/22/2021)

Income Limits (11/24/2021)

1. Once a tax credit property is placed in service, it will not use lower income and gross rent limits, even if limits go down in the property's area.

True or False

Details | Starting with the Housing and Economic Recovery Act (HERA) in 2008, tax credit income limits hold harmless. That is, once a project places in service, the income limits used will never go below the limits used in a prior year.

2. MTSP income limits are used for which programs

A) HUD Multifamily

B) Tax credit and tax-exempt bonds

C) Rural Development 515 and Farm Labor

D) HOME and National Housing Trust Fund

Details | HUD describes the tax program limits as Multifamily Tax Subsidy Program limits.

3. Once HUD releases the HUD and MTSP income limits, these must be implemented for HOME and national HTF units.

True or False

Details | HOME limits are different than other HUD program (AMI) or the tax credit limits. They are generally published months later and are implemented then.

4. A project placed in service in the year 2009 is eligible for the HERA Special tax credit limits if these limits are listed as an option for the property's county.
True or False

Details | HERA Special limits are available to projects with at least one building placed in service in 2008 or earlier. A 2009 project does not qualify.

5. What type of financing at a tax credit property makes it ineligible for the Rural National Non-metropolitan limit?
A) HUD

B) Rural Development

C) HOME

D) Tax-exempt bonds

Details | Tax credit deals that are 4% "federally subsidized" are not eligible for the rural limits. HERA defined "federally subsidized" as tax-exempt bonds.

6. Which government agency defines "rural" areas that are potentially eligible for the rural National Non-metropolitan limits?

A) HUD-MF

B) IRS

C) USDA

D) HUD-CPD

Details | Areas defined by USDA as eligible for RD assistance are eligible for the rural rent option.

Life Insurance (10/27/2021)

Military Members (9/22/2021)

1. If a military household member receives hazardous duty pay, this pay is included as income.

True or False

Details | Owner / agents are to count "all regular pay, special pay, and allowances of a member of the Armed Forces, except...the special pay to a family member serving in the Armed Forces who is exposed to hostile fire (e.g., in the past, special pay included Operation Desert Storm)" Hazardous duty pay is not hostile fire pay, and is therefore included.
HUD Handbook 4350.3 Exhibit 5-1. (compare "Inclusions" (8) and "Exclusions" (7)).

2. What document should be requested to verify income for persons in the military?

Details | Persons in the military receive a Leave and Earnings Statement (LES). These statements act essentially as pay stubs and provide income information for all military pay and allowances received.

3. A grandparent living in a unit moves in their grandchild because the parent of the child is stationed out of the country on active military duty. Both the absent adult and their child must be counted as household members, and their income added to the grandparent's income.

True or False

Details | Normally "if the spouse or a dependent of the person on active military duty resides in the unit, that person’s income must be counted in full, even if the military member is not the head, or spouse of the head of the family." However this section of the handbook goes on to clarify that "Owners are encouraged to be as lenient as responsibly possible to support affected households in situations where persons are called to active duty in the Armed Forces." This includes allowing "a tenant living in an assisted unit to provide care for any dependents of persons called to active duty in the Armed Forces on a temporary basis, as long as the head and/or co-head of household continues to serve in active duty. Income of the child (e.g., SSI benefits, military benefits) is not counted as income of the person providing the care." In the described case, the children and absent parent would likely to be considered part of a temporary arrangement and not household members whose income must be counted.

4350.3 5-6 (B)(3)(a) & (C) (2). The IRS endorses the same approach for tax credit properties in the 8823 Guide, Chapter 4.

4. Veteran members of a household who are students are an allowed exception to the HUD/RD/HOME student rule.

True or False

Details | See 4350.3 3-13 (A)(2)(d).

5. Veteran members of a household who are students are an allowed exception to the LIHTC student rule.

True or False

Details | Unlike the HUD rule, the tax credit/bond student rule does not make any exception specifically because someone is a veteran.

Fair Housing: Disability (8/25/2021)

Monitoring Agencies and the HUD Handbook 4350.3 (7/28/2021)

Foster Household Members (6/23/2021)

Net Income (5/26/2021)

1. We are not ever allowed to subtract amounts off of periodic payment sources to use net income when calculating gross annual income for a household.

True or False.

Details | There are times when we take off certain amounts before calculating gross annual income for households.

2. If the above is False, create a list of exceptions.

NOTE: this does not represent all excluded income (per HUD 4350.3 Exhibit 5-1), but rather times when we commonly must calculate a lower amount from available information.

1. Self-employment: "When calculating annual income, owners must include the net income from operation of a business or profession including self-employment income. Net income is gross income less business expenses, interest on loans, and depreciation computed on a straight-line basis." HUD 4350.3 5-6 H

2. Benefit adjusted for prior overpayment: "If an agency is reducing a family's benefits to adjust for a prior overpayment (e.g.,social security, SSI, TANF, or unemployment benefits), count the amount that is actually provided after the adjustment." HUD 4350.3 5-6 J

[calculation: gross social security less adjustment for prior overpayment]

3. Social Security delayed benefits: Excluded as income are the parts of payments that represent "deferred periodic amounts from supplemental security income and social security benefits that are received in a lump-sum amount or in prospective monthly amounts." HUD 4350.3 Exhibit 5-1 Income Exclusions(13).

[calculation: gross social security less amounts for delayed benefits]

4. State, local government, social security or private pensions paid to
a former spouse:
"Other state, local government, social security or private pension funds paid directly to an applicant’s/tenant’s former spouse pursuant to the terms of a court decree of divorce, annulment, or legal separation are
also not counted as annual income." HUD 4350.3 5-6 L 5

[calculation: gross social security less amounts ordered to former spouse]

5. VA deferred benefits for section 8 residents: "For Section 8 tenants only, any deferred Department of Veterans Affairs (VA) disability benefits that are received in a lump sum or in prospective monthly amounts are excluded from annual income." HUD 4350.3 5-6 Q 3

[calculation: gross VA benefit less amounts for delayed benefits]

6. Earned income for adult dependent full-time students: Income is excluded that is for "earnings in excess of $480 for each full-time student 18 years or older (excluding the head of household and spouse)." HUD 4350.3 Exhibit 5-1 Income Exclusions(11)

[calculation: gross earned income less everything but $480]

7. Adoption assistance payments: "Adoption assistance payments in excess of $480 per adopted child" are excluded." HUD 4350.3 Exhibit 5-1 Income Exclusions(12)

[calculation: gross adoption assistance payments less everything but $480]

8. Military hostile fire pay: Income exclusions include "the special pay to a family member serving in the Armed Forces who is exposed to hostile fire."HUD 4350.3 Exhibit 5-1 Income Exclusions(7).

[calculation: ALL military pay and allowances, less hostile fire pay]

CLICK BELOW FOR THE QUIZZES & ANSWERS

2025

Unique Program Provisions (4/30/2025)

LIHTC Terms (3/26/2025)

Assets (2/26/2025)

Casualty Loss (1/29/2025)

2024

HOTMA Deadlines (12/30/2024)

Program Regulations (11/27/2024)

Fair Housing 2024 | Part 2 (10/30/2024)

Fair Housing 2025 | Part 1 (9/25/2024)

RD and HOTMA | Aug 2024 Update (8/28/2024)

HOTMA HUD TSP | Part 2 (7/31/2024)

HOTMA HUD TSP | Part 1 (6/26/2024)

HOME Provisions (5/29/2024)

Fosters and HOTMA (4/24/2024)

Income Limits 2024 (3/27/2024)

RD and HOTMA (2/28/2024)

HOTMA 2024 (1/31/2024)

2023

Military Pay and HOTMA (12/27/2023)

HOTMA Updates (11/30/2023)

Utility Allowances | Part 2 (10/25/2023)

Utility Allowances | Part 1 (9/27/2023)

VAWA - with 2023 updates (8/30/2023)

Assets - with bonus HOTMA updates (7/26/2023)

New NSPIRE Standards (6/28/2023)

HOTMA Part II (5/31/2023)

HOTMA Part I (4/26/2023)

Verifications | Part 2 (3/29/2023)

Verifications | Part 1 (2/22/2023)

Leases (1/25/2023)

2022

Zero Income Households (12/28/2022)

HUD Adjusted Income Deductions | Part 2 (11/23/2022)

HUD Adjusted Income Deductions | Part 1 (10/26/2022)

Income of Dependents (9/29/2022)

HUD | Student Rules (8/24/2022)

Fair Housing | Disability and Religion (7/27/2022)

Income Limits | MTSP v AMI (6/22/2022)

Tax Credit Rules | Project or Building? (5/25/2022)

HOME v. National HTF | Part 2 (4/27/2022)

HOME v. National HTF | Part 1 (3/30/2022)

Applicable Fraction v. Minimum Set-Aside (2/23/2022)

Zero-Income Households (1/26/2022)

2021

Minimum Set Aside (12/22/2021)

Income Limits (11/24/2021)

Life Insurance (10/27/2021)

Military Members (9/22/2021)

Fair Housing: Disability (8/25/2021)

Monitoring Agencies and the HUD Handbook 4350.3 (7/28/2021)

Foster Household Members (6/23/2021)

Net Income (5/26/2021)

HOME & HTF Evictions (4/28/2021)

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